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Toronto, Ontario, March 8, 2022 – Silver Mountain Resources Inc. (“Silver Mountain” or the “Company“) is pleased to announce its 2022 exploration program at its Castrovirreyna Project located in central Peru (the “Expiration Program”). The primary focus of the Exploration Program will be to convert and expand the current historical resources of the Reliquias silver underground mine at the Castrovirreyna Project into a National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant mineral resource.
Alfredo Bazo, President & CEO, commented, “We are very excited to start this drilling program at our flagship project with a focus on the Reliquias silver underground mine, where we see excellent potential to validate and grow the historical resources. We also expect that our program will add new discoveries by diligently exploring our promising brownfield and greenfield targets.”
The Huancavelica region, and especially the Castrovirreyna mining district, is known to host significant precious metal and polymetallic deposits such as Julcani (101 Moz Ag past production) and San Genaro (>60 Moz Ag past production; data source for both mines: Acosta et al., INGEMMET, 2015). Silver Mountain, through its subsidiary Sociedad Minera Reliquias S.A.C., controls over of 27,000 hectares in this belt, mostly within the prospective Reliquias and Dorita property blocks.
2022 Exploration Program
A major part of the Exploration Program will be directed towards drilling the Reliquias silver deposit both from surface and underground. Approximately 15% of the budget will be allocated to conduct brownfield exploration on the large, highly prospective land package surrounding the former operations (Fig.1). Funding has also been earmarked for regional exploration at the Dorita claim block and other regional exploration targets.
The Exploration Program is planned as follows:
- Reliquias underground drilling program of 12,000m, sampling, and mapping;
- Reliquias and Caudalosa Grande surface drilling program of 17,000 m, and geochemical sampling;
- Brownfield Exploration on Reliquias claim block: surface mapping, geochemistry, and geophysics; and
- Dorita claim block: geological mapping, geophysics, and geochemistry.
Figure 1: Silver Mountain’s Reliquias land package. The map shows the large number of identified veins and fault structures and associated argillic alteration zones.
Reliquias Underground Drilling Program
At the Reliquias underground mine, over 10 silver-rich polymetallic veins have been recognized along NW-SE and E-W striking trends. Examples of historic drill intersections include 2,784 grams per tonne (g/t) of silver over 1.05 m for the Vulcano vein and 1124 g/t of silver over 0.9 m for the Perseguida vein.(1) Based on historic exploration at the Reliquias mine, the previously identified mineralization remains open along strike and at depth.
The proposed 2022 underground drilling program of 70 holes for a total of 12,000 m is expected to validate historical resources that are within the most promising vein structures. In addition, the drilling will also aim at extending the known silver-rich zones at depth. Furthermore, an extensive underground mapping and sampling program will be carried out in the historic mine workings to better understand the geology and controls of the mineralization and update the 3D mineral model for future mineral resource estimations.
Reliquias and Caudalosa Grande Surface Drilling
After completion of the underground drilling, a 13,000 m drilling program will commence on surface in the area of the Reliquias and Caudalosa Grande mines once the respective permits have been granted. As the mineralized structures extend for considerable strike length on the Silver Mountain’s concession block (Fig.1), there is potential to add mineral resources at or near surface. The drilling campaign will evaluate known high-grade silver zones and test potential extensions of the principal vein structures. This program will be complemented by detailed geological mapping of the most prospective zones and extensive rock sampling.
Reliquias Block Brownfield Exploration
The Company intends to allocate funds in 2022 to conduct brownfield exploration on the large, highly underexplored land package surrounding the former mines. At the Caudalosa Grande mine, at least six veins with silver-rich historic resources are known. A mineralized corridor with a strike length of up to 5 km has been identified, returning high-grade silver values in rock samples on surface.(1) This corridor extends from Caudalosa northwest towards the Poetas target and towards the west to the Bonanza – Yahuarcocha targets, respectively (Fig. 1).
The brownfield program includes geological mapping of the veins and breccias zones outcropping within the large alteration zone. It will be accompanied by a widespread rock sampling program, and geophysical surveys of the most promising targets.
The large Dorita concession block is located approximately 25 km northwest of the Reliquias mine. Breccias and vein systems hosted by volcanic and volcanoclastic rocks have been identified on these claims, surrounded by a widespread alteration zone (Fig.2). At Dorita, small-scale underground exploitation was carried out by a previous owner, based on silver-rich polymetallic veins that appear to transition from high to intermediate sulphidation. Further west, the Huancarpusca target displays typical alteration features of a high-sulphidation system.
The exploration program for the Dorita claims will consist of detailed mapping and geochemical sampling followed by a geophysical survey. Applications for drill permits have already been filed to allow for drill testing of the best targets later in 2022 once the permits are granted.
Figure 2: Silver Mountain’s Dorita land package. The map shows the main exploration targets Dorita and Huancarpusca within large alteration zones.
For additional information in respect of the Castrovirreyna Project, please refer to the Company’s technical report entitled “National Instrument 43-101 Technical Report – Castrovirreyna Project, Peru”, dated October 6, 2021 and amended November 18, 2021 with an effective date of August 17, 2021, (the “Castrovirreyna Technical Report”) and available on the Company’s profile at www.sedar.com.
On Behalf of the Board of Directors of Silver Mountain Resources Inc.
Alfredo Bazo, Chief Executive Officer and Director
The scientific and technical information contained in this news release has been reviewed and approved by Jose Vizquerra, a Director of the Company and a Qualified Person within the meaning of NI 43-101.
(1) Please refer to the Castrovirreyna Technical Report. The potential quantity and grade of mineralization described herein is conceptual in nature as there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in targets being delineated as a Mineral Resource.
About Silver Mountain
Silver Mountain Resources Inc. is a silver explorer and mine developer planning to re-commence production at the Reliquias underground mine and undertake exploration activities at its prospective silver camps at the Castrovirreyna Project in Huancavelica, Peru.
Silver subsidiary Sociedad Minera Reliquias S.A.C. owns 100% of its concessions and holds more than 27,000 Ha. in the district of Castrovirreyna, in Huancavelica, Peru.
For Further Information Contact:
Alfredo Bazo Jean Pierre Fort
President, CEO & Director Chief Financial Officer
Silver Mountain Resources Inc
82 Richmond Street East
Toronto, ON M5C 1P1
(647) 262 4017
Forward Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, “forward-looking statements“) that relate to Silver Mountain’s current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as “will likely result”, “are expected to”, “expects”, “will continue”, “is anticipated”, “anticipates”, “believes”, “estimated”, “intends”, “plans”, “forecast”, “projection”, “strategy”, “objective” and “outlook”) are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. Forward-looking statements in this news release include, but are not limited to, statements in respect of the Company’s proposed Exploration Program and the potential results thereof.
Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond Silver Mountain’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the factors set forth under “Forward-Looking Statements” and “Risk Factors” in the Company’s final prospectus dated January 26, 2022. Silver Mountain undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Silver Mountain to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.